[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: welcome to the "live desk." i am martha maccallum. trace: i am trace gallagher. let's get you updates on three stories that are breaking right now. the cia inspector general is speaking out over allegations surrounding former vice president dick cheney. catherine herridge. >> there have been a lot of allegations that the former vice president try to influence the cia inspector general when he was investigating the enhanced interrogation program. in a statement to fox, the former cia inspector general said there was no effort by dick cheney to intimidate him or influence his work, specifically his findings were his recommendations. this would seem to put those allegations to rest. trace: breaking news on

embattled south carolina gov. mark sanford. >> the lieutenant governor of south carolina is calling on sanford to resign purity made this announcement at a noon news conference. his fellow republican, gov. mark sanford has been under fire since june when he was missing in action for several days only to announce that he was in argentina visiting his mistress. he has also been under scrutiny for using state aircraft for personal trips. trace: from the foreign desk, breaking news that pakistan is raising attacks on the taliban. >> three weeks after a cia drawn kill the top leader of the taliban in pakistan, and his followers have finally confirmed his death.

successors may start high- profile attacks. one of those successors said president obama was public enemy number one. martha: fox news can confirm that senator ted kennedy will be buried at arlington national cemetery near his other two brothers. there is a live shot this afternoon at arlington cemetery. the flags are flying at half staff. you will be buried next to his brothers, robert and john. he participated in their funerals and their eulogies. he died at the age of 77. it was a more than one yearlong struggle with brain cancer. in the beginning, many did not expect him to survive as long as he did. here are pictures of him coming

out of the hospital after the initial diagnosis. he served 47 years in the senate. president obama says that he worked hard all the time. he worked very hard to change america for the better. >> his ideas and ideals are stamped on scores of laws and reflected in millions of lives. seniors have no new dignity. family to no new opportunity. and children who know education's promise, and all who can pursue their dream in an america that is more equal and more just, including myself. martha: bret bair, this news, although everybody knew it was likely to be coming, it sinks in in many parts of the country, and is felt so strongly in washington.

he and his family made civil rights the hallmarks of what he did. how is his loss felt where you are? >> there is outpouring of response from both sides of the ideal. when you look at his 36-year career, it's banned overtime presidencies. he authored or coauthored 2500 pieces of legislation. they were big pieces of legislation. as you mentioned, the civil rights legislation, title 9, cobra. some people say that you can measure a man by what his adversaries say about him. there are a lot of republicans who ideologically were diametrically opposed to senator ted kennedy who are coming out in droves today praising his career on the senate. we learned that former president george w. bush called mrs. vicky

kennedy this morning and passed on their condolences. senator ted kennedy worked with president bush on a child left behind. most people you talk to in the senate said that despite being very liberal, very partisan, he was also old-style politics. politics that really is not up on capitol hill as much as it was. he could get a compromise because he had the cover of been so loved by the liberal side of the democratic party that he could move to the center and convince people. senator john mccain, the republican from arizona, said when senator ted kennedy said something. martha: you wonder who will take his place in that role. you have this great old guard of

senators. a lot of people feel that business is not done the way it used to be done. you think of all those guys who were able to have their arguments with the other side and sit down and have a beer after word, that feeling, who will be able to maintain or perpetuate that kind of feeling on capitol hill? is it gone? >> that is a good question. no one has filled that void. senator john mccain called senator kennedy irreplaceable. there is a question about that. also a question about how health care reform and the debate about it may have changed had senator kennedy been in the mix from the very beginning. we talked about how he could make compromises. he also had some very personal lives in his career. you cannot -- he also had some very partisan moments.

that said, what is remembered today are the things that he could get done, the compromises he could make, and the fr eindships he had over 47 years and nine months in the senate. martha: thank you very much. trace: senator ted kennedy was a champion of health care reform. because of his illness, he was not able to directly participate in this debate. it is a fight he had been braced for a long time. he called it "the cause of his life." >> new hope that we will break the old gridlock and guarantee that every american will have decent, quality health care as a

fundamental right and not a privilege. [applause] trace: we are getting more information on the services that will be held for senator kennedy. major garrett is that martha's vineyard traveling with the president. >> the kennedy family will release a statement in the next couple of hours. here's what fox has confirmed. there will be a funeral for senator kennedy in boston. he will lie in oppose at the john f. kennedy library, also in boston. he will be buried at arlington national cemetery. the dates and times are still to be determined. we are led to believe senator kennedy will not lie in state at the u.s. that had been under consideration. -- that had been under consideration. we know for sure that there will be a funeral in boston.

he will be buried at arlington national cemetery. that is what we know as far as the details. i assume the statement will be coming out in the next couple of hours. that is what we know and can confirm. trace: there's still nothing as far as a timeline. >> that is right. when we have it, we will get it to you. trace: major garrett, thank you. the minnesota governor will join us at the bottom of the hammer with his take on what lawmaker should do in this controversial health care debate. martha: this is a huge controversy. the white house does not want the cia to interrogate terror suspects. they want a new panel. the panel will report to the white house. that is a very big change in the way terrorists will be

interrogated. the man who will play a key role in putting together the panel is raising some eyebrows. the huge controversy over the president's cia changes. that is next or just one brita faucet filter. ( drop plinks ) brita-- better for the environment and your wallet. a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... to relieve arthritis pain all day. i switched to a complete multivitamin with more. only one a day men's 50+ advantage...

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trace: harry reid speaking about ted kennedy. >> one of the highlights of my life working in the united states senate was ted kennedy. he was such a friend, a model public servant, and a brilliant american icon. so many difficult times in kennedy family history, they turned to their uncle ted for comfort. so many times in our country's history, america has turned to ted kennedy for the same

comfort. with a grieving first lady at arlington national cemetery, and i will never forget how his deep love for his brother bobby helped him somehow summoned the strength to deliver that eulogy. as patriarch, he grieved with us with a loss of john john. for decades, ted kennedy was the rock of his family. he has left us to remember. it is now up to us to celebrate the senator who has helped so many live better lives. as a student at utah state

university, i formed to the first young democrats club. i got a letter from president- elect kennedy. it was between the time that he had been elected and before he was inaugurated. he sent me this letter. i saved it all these years. when you come into my office, off to the right is the letter. it was very often that ted would come in and look at that letter. he was proud of his brother and proud that i have that letter. i immensely appreciate the opportunity to go from the young democrats to regain with such a champion of what america stands for, for carry of others, for quality, and progress. senator kennedy's legacy, the

most devoted to ever serve in congress. because of ted kennedy, and more young people could afford to be healthy. more young adults could afford to become students. more of our older citizens and poor citizens could get the care that they need to live longer, fuller lives. more minorities, women, and immigrants could realize the rights our founding fathers promised us. this man of wealth fought for those less privileged. because of ted kennedy more americans are proud of our country. kennedy's america is one in which we did all pursue justice, enjoy freedom. his love of a family that loved him and his belief of a country that believes in him. his dream was one in which the founding fathers fought, and for

which his three brothers died. the liberal lion's mighty roar i will always remember may now fall silent, but his dreams will never die. i will be happy to take a few questions. >> can you tell us something that maybe we do not know about him personally? >trace: that is senate majority leader harry reid paying tribute to senator edward kennedy in las vegas. he said that the roar of the lion he will always miss. we want to give you a live look at the capitol. the flags are flying at half staff on capitol hill. major garrett was giving us some information about the services for senator kennedy. there will be a funeral service in boston. he will lie in prrepose at

the jfk library in boston. he will be buried at arlington national cemetery along with his two brothers. martha: many say that the president has opened a huge can of worms in allowing his attorney general to dig back into the cia interrogation. some critics say that the president may end up regretting allowing eric holder to make this move. and then there is his pick to began this process of creating a new panel of interrogators. this would be a team that would now be in charge of terrorist interrogation and that team would report directly to the white house. intelligence sources say the cia may be somewhat relieved to have this duty of their plight. exactly who will the new interrogator's be? can they get the job done?

meet john brennan. the white house will put him in charge of putting this group together. he was at the heart of president bush's intelligence effort. he was there when the intelligence techniques work active. how will he change the way things are done? john bolton is a former ambassador to the un. talk to me a little bit about john brennan and about this panel that is getting put together. >> i think are very serious questions about this. the idea that you can take interrogation of detainee's detainee's out of the process is a big mistake. the interrogators need to be part of a larger effort. to put them under the direct supervision or oversight of the national security council is a huge mistake.

we are in the process of dismantling our intelligence gathering capabilities, at least on the human intelligence side with the investigations of the cia that the justice department will carry out. the massive declassification of cia documents that we have seen. the dispute between the cia director and a director of national intelligence, which is debilitating the intelligence community. all of this points in the direction of the much weaker intelligence gathering capabilities. martha: if he is put in this role, he was with the cia. he was there when these enhanced interrogation techniques were being devised and implemented. what do you expect his change would be in that regard? >> i think he was president obama's pick for a very senior pick up the cia, perhaps even director.

it was felt that his involvement in the enhanced interrogation techniques would make him a difficult confirmation battle in the senate. my guess is that he will do exactly what the president wants. in that sense, i do not think he will be a problem for the president. i think the problem is in the weakening of our intelligence gathering capabilities. this is something that may not affect us today or tomorrow, but over the months and years, the cumulative impact could be quite severe. martha: we learn more as we go through these documents. it was an internal cia group that brought to the attention of the attorney general some of the practices that were being done. so they brought this investigation up in the first place. then you have the backing up information that goes through an documents exactly the different plots and plans that were obtained and claimed as a result of this.

do you think that this could be problematic for the obama administration if they go down this road and they have to come back and say there's no need to investigate because it has already been done? >> the consequences will be adverse no matter what conclusion did finally come to on prosecution because there are many people in the cia and other intelligence agencies to say -- if we stay within the rules but we can be second test for political reasons by subsequent administrations, we are going to find another line of work. it is just not in their long- term interest to stay in this very difficult and dangerous world that they operate. that is why the unraveling of our overall intelligence gathering capabilities is very much at risk. martha: ambassador john bolton, thank you. trace: political news in south carolina regarding mark sanford. the lieutenant governor is holding a news conference calling on his boss to resign.

that is a live look at the nation's capitol building. the flags are flying at half staff. that is arlington national cemetery. that is where ted kennedy will be buried. we will have continuing coverage of the death of senator kennedy as 77 years old n

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martha: in the top box, that is a look at arlington national cemetery. we're learning today that senator edward kennedy will be buried near his brothers robert and the former president john f. kennedy. in the middle box, the afghan president cars i getting closer to the 50% that he would need to avoid a runoff -- afghan president carkarzai getting closer to the 50% that he would need to avoid a runoff. in bottom box, signs of life in the housing markets. trace: more on the breaking news from south carolina. lt. gov. andre bauer calling on his boss, gov. sanford, to resign. >> the lt. gov. andre bauer made

this announcement at a noon news conference that he called < 45 minutes before it occurred. he said that he tried to give the governor the benefit of the doubt in june when he announced after a five day disappearance that he had gone to argentina to visit a mistress. andre bauer says questions are arising over the governor's travel have become too much of a distraction for him to adequately conduct state business. stanford has been under intense scrutiny for flying first class at taxpayer expense. andre bauer says he is worried that if the governor remains in office, the next session would be dominated by calls discussing his impeachment rather than jobs and the economy. if gov. mark sanford were to step down, under the south carolina constitution, the

lieutenant governor is next in line to finish the remainder of his term. andre bauer is currently a candidate for governor in 2010. he says that if state scenario plays out that he will drop his bid for governor in 2010. gov. sanford had no immediate reaction to the lieutenant governor's news conference. the governor's press secretary says he expects to issue some sort of statement later today. trace: thank you. martha: minnesota governor tim pawlenty has been in the news lately, calling the democrats' health care plan a potential massive spending disaster. he has criticized president obama's handling of this issue. he has also been talked about for the next presidential election. he joins us next. combines two powerful medicines for fast relief of your diarrhea symptoms, so you can get back out there.

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they say imports always get the best mileage. well, do they know this malibu offers an epa estimated 33 mpg highway? they never heard that. which is better than a comparable toyota camry or honda accord? they're stunned. they can't believe it. they need a minute. i had a feeling they would. there's never been more reasons to look at chevy. martha: this is a fox news alert. just crossing the breaking

information. part of the funeral ceremony will take place in boston. we expect another part of it will be announced. and the burial at arlington national cemetery. senator edward kennedy will lie in repose at the jfk library. the funeral will be in boston at the mission church. we are told that senator kennedy once prayed at that church while his daughter overcome cancer. he and his wife have three children. two of them struggled with cancer in their lifetimes. at arlington national cemetery, he will be laid to rest next to his brothers, president john

kennedy and senator robert kennedy to the military district of washington will be in charge of all the arrangements. we will give you the dates and times, which is what we do not know yet. the family is working to get all of these details and we will bring them to u.s. soon as we get them. trace: brand new information on three big stories. the nation mourns senator kennedy. >> family members have gathered here throughout the day for senator kennedy who passed away last night at the age of 77 to the family is pulling together funeral arrangements. the senator will lie in repose at the jfk museum. he will be buried along with his brothers at arlington national cemetery. trace: thank you. home sales are up 10% in july.

>> better than expected, and the fourth straight month we have seen what is now becoming a trend in new home sales. mortgage applications are up. it looks like we might have some positive news in the housing market. new-home sales are only 15% of the total market. there is some concern on wall street on whether or not this is sustainable. the first-time home buyer tax credit expires in november. some are wondering if this trend can continue into next year. trace: now to the weather center. there is a tropical storm threatening the east coast. >> this is one to watch. the track on danny has it coming closer to the u.s., perhaps two landfalls very close to cape cod and up toward nova scotia. it is forecasted to become a

hurricane in the next several days. we need to proceed with caution and watch every forecast very carefully. trace: thank you. martha: the health-care debate continues to rage on at these town hall meetings and political talk shows. minnesota governor tim pawlenty is emerging as some would say a more measured voice on this issue. he says americans are becoming scared areticked off by some of these plans on the table. he has a more common sense approach. minnesota governor tim pawlenty joins us now. obviously, this was central to ted kennedy's wishes. he wanted to see and public option. you feel we are entering an extraordinary amount of debt.

>> we all agree that the health- care system is broken. the program that the president has put on the table does not contain costs. exacerbates cost and steady in a way that is concerning not just to conservatives, but a broad cross-section of americans. martha: $9 trillion is the latest number coming out of the white house. and what the people wonder how you can even talk about spending $1 trillion. and where's the country had it if we are willing to take this on? >> you have an administration and congress that has exponentially grown the federal debt. it is out of control. it is reckless. the congress and the president need to hear the message. that is why you see people get

frustrated about this. they have a government centered view on how to fix this. they say we will have this public option. and they say we will keep the private sector on a spree that means, if we do not like the price of potatoes, are we going to have government potato farms? that is a very different view than i have and what most conservatives have. trace: thank you for joining us. we talked about how you are trying to be the voice of reason to you have taken a couple jabs at sarah palin and mitt romney's plan. >> i do not think i have taken a jab at them in the sense of criticizing them. the massachusetts plan has succeeded in expanded access to

people who are uninsured, but it has not succeeded in controlling costs. there was a news story in "the boston globe" that massachusetts has one of the most expensive and rapidly rising health care plans. i believe mitt romney would have done something to address that or fix that. he has not been there for four years. he has not been there for four years. trace: is this a turning point for the gop? is this a turning point for the republicans? >> it is a turning point and an opportunity because it shows the contrast between the philosophy and the government centric view of the obama administration. it is a tremendous opportunity for republicans. it is not just as health care plan. look at the cash for clunkers program. we're paying ourselves money to buy clunkers, borrowed from the

chinese, so we can pay our selves' back. the american people are worried and mad. martha: one of the things people say is that you see this uprising across the country and some real passion on the part of people who are very concerned about health care. a lot of them feel they're not getting the leadership in the republican party. they wonder why the republican party did not do something about this when they had the chance. is there one thing you would like to see republicans do that would make a difference? >> absolutely. they're all kinds of things that we can do on a bipartisan basis. one example of many is we could all agree that we should not pay for just volumes of procedures. we should pay for better health and better health care options.

it makes common sense. we want consumers in charge of that, not the federal government. martha: is this going to be a central issue for you as you run for president in 2012? >> [laughter] i have not said i am running for president in 2012. this is a key issue for all americans. this is one of the things that is pretty in the backs of families, small businesses, and governments. -- this is one thing that is breaking the backs of families and small businesses. we have to fix this, but we do not like the white president obama and the democrats are trying to -- we do not like the way president obama and the democrats are trying to. trace: the 21-year-old mother of two was kidnapped and murdered and then dumped in the woods. the jurors and families are hearing the final moments in the

life of denise lee. trace: very difficult to listen to. we will play you more of that call and the accused killer's reaction to that call in three .

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we are expecting more information on the dates. we do not know exactly when this will take place. trace: a haunting 911 call. rishaad the crowded courtroom. the lifeless body of 21-year-old denise lee was found in a shallow grave last year. prosecutors say she was kidnapped, shot, and killed. if you listen closely, she is trying to give the 911 clues about what is going on. we have to warn you, very disturbing.

trace: the tiller does not know she is on the phone at the time. she keeps trying to ask where she is going and where the location is, try to give the 911 operator clues. the call played in court and he sat motionless. it was five and half minutes long. she leaves behind a husband and two young children. her family was also in the courtroom. martha: her father is a former policemen in florida. her husband and her father both said that they wanted to listen to the tape, and they wanted to be there and stare down that man who they believe did this to their daughter and to their wife.

the sound of her voice -- the father said she is my daughter and i will be with her through everything. it is shocking and awful. switching back to our other top story today, we know he was the lion of the senate throughout the course of his 47 years on capitol hill. do you know how much of a direct impact ted kennedy had on all of our lives? senator kennedy cast crucial votes on issues that affected the lives of all americans. how many votes did the cast in his entire career? you will be astounded when you see are fact of the day as we look back at the life of senator kennedy. >> and when i think that of all the miles and all the months and all the memories, i think of view, and i recall the poet's

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martha: no matter where you live or what part do you support, senator kennedy had a direct influence on your life. just how much of the influence? look at this. senator kennedy cast 15,236 votes. he spent nearly 47 years on capitol hill. an incredible amount of work and a body of work that will be remembered very closely.

he is known as a man who has gotten a lot of things done. he is fondly remembered by colleagues on both sides of the ideal. chris wallace joins us now. looking back, there are things that we all knew over the course of these years, but when you look at his life personally and on capitol hill, if you wrote a novel and created this character, you could never fill it with the things that happened to and because of this man. >> absolutely. he was a larger-than-life figure. his triumphs were larger than life. his tragedies were larger than life figure could probably write a trilogy about him. you are talking about the legislative accomplishments -- so many of them affect our lives. the americans with disabilities act in 1990. he did that with the george h.w. bush.

he reached across the aisle was so many things. on domestic issues for george w. bush in 2001, but no child left behind act on education. also with bush in 2004, the medical prescription drug act. health aninsurance for children. i have a whole list. you could go on and on in the areas of health care, civil- rights, and education. you can agree or disagree with the direction he wanted to take the country, but one of the important legislatures of our lifetime. martha: when you talk about the future of the kennedy family, uthe children of bobby and jfk have said that he became sort of a surrogate father. and he was a huge supporter of

caroline in her run for the senate. who does that leave to take over? >> i do not know that anybody is going to take over in that way. there were those nine extraordinary kennedys who were the children of joe and rose kennedy. there are nine of them. there's only one left. that is jane kennedy smith. with nine parents, there are an awful lot of the next generation of kennedy kids. i'm not sure there's any single one that sticks out. i'm not sure they will make their mark in the area of political office. as we saw with eunice kennedy shriver, a lot of the kennedys have done a great deal outside of that area. for instance, caroline kennedy with public schools in new york.

joe kennedy iii has done it with the energy program in boston. i think you'll see it much more varied in and out. they all feel this tremendous sense of public mission. i think it will all continue in that general area. martha: serving in many ways was a hallmark of the family. thank you very much. we will be watching your coverage throughout the weekend. trace: i want to show you what foxnews.com is doing now as kind of a tribute to senator kennedy. >> as you can see, we have a ton of coverage on ted kennedy. maybe you do not have time to read all of it right now. we created a ted kennedy interactive. you will see a timeline of

senator kennedy's life. they highlight noteworthy points in his life. when he was elected senator for the first time. this is when his brother was assassinated. the 1964 plane crash he was involved in. you can scroll through the later years. you can go to his life in photos. trace: thank you. martha: thank you. we are hearing the chilling firsthand accounts of exactly what went down in the northern california high school on monday when a former student allegedly bought into the building with a chainsaw, a sword, and pipe bombs. we will hear from the hero teacher who tackled him es. but now i have new zyrtec® itchy eye drops. it works fast, with just one drop,

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: i am martha maccallum. trace: i am trace gallagher. brand new stories and breaking news, as always on the "live desk." martha: new details on the funeral and burial of senator kennedy. died of brain cancer last night. he was 77. the funeral will take place in boston. the senator will lie in repose at the jfk library. he will be buried at arlington national cemetery near his

brothers, john f. kennedy and robert kennedy did we will get you the dates as soon as they come in to us. in the middle box, the release of the pan am bomber continues to spark outrage in this country, especially because so many of the victims on the flight were american. the tiller returned to your roswell, in libya -- the tiller returned to -- killer returned to a hero's welcome in libya. we will talk to a mother who lost her daughter. there were 35 students from syracuse university on the right home from a semester in london. in bottom box, tropical storm danny is near the bahamas right now. forecasters say it could pick up

momentum as it moves toward the united states. trace: in washington, flags flying at half staff mourning the loss of senator kennedy. former president bill clinton noted kennedy's devotion to all those in need. former president george bush for calling kennedy's love of family and country. president obama said many were awaiting the senator's death with no small amount of dread. he also said "live desk." -- he also said kennedy's legacy will live on. >> and yet still maintained warm friendships across party lines. he became one of the greatest senators and one of the most

accomplished americans to ever serve our democracy. trace: carl cameron, kennedy called health care the cause of his life. talk about his record. >> it goes back decades. he took office in 1962. he was involved in all of the socially liberal issues that one would expect. he had a sponsorship role in some of the most important health care legislation in the past half century. he was directly involved in passing the family and medical leave act. he was involved in the americans with disabilities act, which made it necessary for government and private businesses to make themselves accessible to folks with disabilities. he was a direct participant and a bipartisan cooperation with the bush administration in the medicare prescription drug plan.

and he was critical in treating the -- and creating the s-chip program. trace: what about the hot button issues? >> he was involved in the civil- rights debates. he was involved in the women's rights debates pretty was a big proponent of the feminist movement in the 1970's. there was a seminal moment in 1987 when ronald reagan nominated judge robert bork to be a supreme court justice. ted kennedy rushed to the supreme court floor with a tough attack on robert bork that many say attended his nomination, but set a truly partisan tone ever since that has dogged supreme court nominees. trace: carl cameron on capitol hill, thank you. martha: the push to reform health care is alive and well at town hall meetings across

america. missouri senator mcaskill told the crowd that she supports a government-run insurance option as long as it promotes competition. >> any public option that i would support must be constrained in a way that allows competition in the free market. if we do not have competition in the free-market -- frankly, we do not have competition now. martha: what was it like there today? >> people were fired up about taxes and government spending and what health care reform would cost. the senator tried to reassure constituents by saying she would only supported if it was a

deficit neutral, which is something president obama wants to do. she says that she will bring the views of her constituents with her to the debate in washington. there were some intense moments along the way. martha: good for her and others who are out there doing their job and talking to people. last night in northern virginia, there was a feisty moment. the congressmen and former vermont gov. howard dean were the headliners. >> 2500 people were all fired up about health care reform, the public option, and a government- run healthcare. listen to this exchange. >> the last thing i will say which will undoubtedly send me all the way i came in, i support president obama's health care

plan, including the public option. an>> clearly, a lot of table led to the town hall meeting want to send the message to him and to democrats across the country. that was the message they sent to howard dean. martha: that is what it is all about. mike emanuel in washington, thank you. trace: brand new information on the technique is cia interrogators used. the newly released memos detail the the use of sleep deprivation, slamming a prisoner's head against the wall, and so-called insults' labs. it says -- cia officials say the harsh techniques were reserved for small group of top ever

suspects. james rosen, sounds like an attack is being mounted on u.s. intelligence? >> there were certainly those who feel that way. this is in the light of attorney general eric holder's announcement that he is planning to reopen an investigation into whether some of the cia officers involved in these interrogations' should face criminal prosecution. it is not the only attack on the cia. in recent months, we have also seen the speaker of the house, nancy pelosi, accused the cia of having misled her on interrogation techniques used against al-qaeda terrorists. we have seen published reports that leon panetta, the current director of cia, has threatened to resign. cia has called those reports

inaccurate. those who have spent time with leon panetta say he is very high ratirrate. trace:. -- trace: this is not the first time that a significant number of officers at the cia have felt demoralized. >> we saw this first and a severely in the immediate aftermath of the vietnam war and watergate with the formation of two different committees in congress that were formed to investigate abuses by cia on domestic soyoil. the most famous of them was the church committee. the use by the kennedy administration of the mafia in an attempt to kill fidel castro.

they say these things of demoralized the agency for 20 years and they did not recover for some time. trace: what put an end to the post watergate era for the intelligence community? >> 9/11. it was not until the n a sentiment that we have put too many shackles on the central to elgin's agency, and it was time for greater freedom on the part of intelligence officers. the sentiment rose that we needed to free the reins on the intelligence community. now there's some sentiment that the cia, as a result of these interrogation techniques, and some other failures, should be called to task. this is part of as i call it,

the cycles of self flagellation. trace: james rosen, thank you. martha: they said it will take $9 trillion to pay off the national debt over the next decade. it is sparking some outrage from the critics of the likely $1 trillion health care plan. can president obama reshapes this debate? that is what democrats want to do. he stormed into a high school ready to use a chain saw against the students. police believe he is now being charged as an adult. the hero who stop to this from happening is now speaking out. >> he was not following my directions. he had this military vest on. martha: incredibly brave man.

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got it. you're secretly taping me? you were good too! but you know, it wasn't a secret to us, we knew... yes, but it was a secret to me. of course, otherwise i would be sitting like this and completely block his shot. so that's why i was like... didn't you notice this was weird? no. they taste fresh because you make them fresh. healthy choice fresh mixers. in the soup or pasta aisle. martha: sometimes the measure of demand is with those who have different beliefs say about him. senator kyl said ted kennedy witness and led some of the most important debates in our nation's history.

he was a zealous advocate for his police and a skilled legislator. he says the senate has lost one of the most respected and passionate members. take a look at the metal box. there are new calls for south carolina gov. mark sanford to resign. they're coming from his own lieutenant governor, andre bauer. in bottom box, the transportation department's has cash for clunkers to underwrite its 700,000 new car sales. the program also came in under the $3 billion budget. trace: speaking of budgets, the obama administration now projecting the debt will rise to $9 trillion over the next 10 years. the nonpartisan congressional budget office is also revising

its projection to more than $7 trillion. both blaming the upper revision on rising unemployment and a worse than expected economy. how does this affect the health- care debate? we talked about the cbo projection. $7.1 trillion is the new number. this is not including the president's proposals, which the cbo say could push this above $10 trillion. how bad are the numbers right now when you talk about health care? >> is hurting president obama. he is trying to sell the health- care proposal as a cost saver. in the short term, it certainly does not save money. most americans will say it is as if the pipes in your house

burst. you need to make emergency repairs. unless you are extremely wealthy, you then cut back on other expenditures. we are a wealthy country, but we're running a pretty large deficits. i think the combination of the substantive criticisms of obama's health care plans are coming close to doing it. trace: the last time you were on the show, it was moments after the cbo came out with that number. it said the health-care plan will actually cost a lot of money. you said that was maybe the death knell for health care. do you think these new numbers are in the coffin? >> president obama is still has large numbers in congress. they will try to do it anyway they can.

he has tried to sell the health care plan that will cost more money and that will not includie health care and could make it worse. i think it is the worst product for most americans. the polls show that most people believe that now. trace: if the proposal is sold to the american people, is there any scenario where the government-run option gets approved, and then taxes on the middle class do not go up? >> no, not two or three years out. if they jam it through, republicans will appeal it until 2010. it is not as if this will be over. i think republicans will say, that was nice, give us the majorities in the house and the senate and we will repeal large elements of this.

it is not that the issue goes away even if you jam something through. i think congressional democrats and moderate democrats looking at that might decide that there's a lot of other works to do in this country. this is not the time for a massive overhaul of the health- care system. i think his plan is in a lot of trouble. trace: thank you. martha: brand new information on the teenager who is accused of detonating two pipe bombs at a california high school. police say they now believe it was part of a larger plot to kill students and staff at that school. police are now charging this man, alexander youshock as an adult. he was taken down by a very brightgrade teacher. -- brave teacher. they say that he had a chain saw

with him. he had a two-foot long sword. the hero teach who tackled this teacher -- the year rotator to tackle the student. two other teachers and principals rushed in. they held him down until the police arrived. >> when the police asked me to evacuate, i moved around the corner and i wanted to try. -- i wanted to cry. i do not know is that as a physical thing. i do not know what i am feeling. i feel emotional. i feel proud. martha: he should feel proud. they say youshock was angry

about the bad grades. he is facing six counts, including attempted murder. trace: brand new assaults just over the border in pakistan to the new fight against the taliban and the impact on the elections of one of the nation's most important allies. witnesses say a look like a war zone. soccer fans clashing with police. the story behind this amazing video is three minutes away.

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trace: news called the night of shame by british press. a huge riot after a soccer match in east london. you can see the fans from both teams clashing with the police. about 200 abroad yet police and the mounted officers were called in to control the crowd. >> basically, just causing havoc, kicking my walls. we thought we would lose a window. >> it was like i was out the front line of a war zone.

i have never seen or experienced anything like that. trace: rivalry between these two teams, west ham and millwall has been going on for 40 years. at least 10 people were arrested. martha: pakistan is stepping up the attacks on militants all along the afghan border. helicopters dropped leaflets warning the residents that it was time to get out. thethe taliban in the region it confirmed the death of their leader. what is the logic behind the newest pakistani military action? >> the fresh assault by the pakistani army was focused near the main city. the used helicopter artillery.

i spoke with a pakistani government official. he said these attacks have been going on for quite some time. within the last 24 hours, the taliban has confirmed for the first time that their former leader is dead. this is after weeks of back and forth. the army attacks could be coming on stronger now, trying to capitalize on what appears to be a rift within the taliban ranks. the taliban has announced a power-sharing. they have announced the new taliban figurehead and a leader who will run the stronghold. he will command a 20,000 force fighting force. there's concern within the pakistani military and government that with this announcement, there could be high-profile attacks around the corner. mainly to show that the taliban are still operating.

i spoke with a taliban expert who said this leader is a -- will be more bloodshed. he is responsible for many of the bombings we've seen across pakistan. he was also giving serious support to the afghan taliban on the other side of the border. the expert thinks the power- sharing will not last. he says it will lead to another power struggle. he says that his mother taliban might become desperate. we need to focus on the fact that there could be these high- profile attacks. taliban will underline that there still operational. as a main concern of the government in pakistan. martha: thank you. trace: there's a new twist in one of our top stories. we have shown newyou sparks flying at these town hall meetings.

and there is new tape, a sneak peek inside senator kennedy's personal office in washington. the life of senator kennedy.

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simply call now and mention free month. call now or go to lifelock.com. ♪ martha: stay tuned, everybody. at 3:30 p.m. this afternoon, the mark sanford saga continues. andre bauer, the lieutenant governor said stanford should resign. mark sanford will say something at 3:30 p.m. this afternoon. trace: we have branded new information on three big stories. the latest on the death of senator kennedy. >> the community is paying their respects to the family of senator kennedy.

we have seen multiple florist vans pull up. the funeral will be held in boston. final burial at arlington national cemetery. trace: thank you. allegations that former vice president dick cheney tried to influence the inspector general of the cia. catherine herridge. >> the cia inspector general was not able to comment on this because the report was classified today he told fox said there was no truth to the rumors. he said that there was no truth to the rumors that the cheney tried to influence him. trace: just like that, a tropical storm building of the east coast. >> this one as close to home.

tropical storm danny, 45 miles per hour sustained winds. could move toward new york city as a hurricane. martha: we have show do all these feisty town hall meetings. we may be about to see a new kind of town hall meeting to the passion of the people has really altered the landscape of this whole discussion. things got heated yesterday after a town hall with republican senator john mccain. >> if these plants are not good enough for you and your family, they are not good enough for us and our family. [applause] martha: this morning, a meeting with democratic senator mccaskill. >> any more government intrusion

will be assault on our liberty. martha: now, maybe better late than never, advocates of the bill want to fight back. there is word of the democrats' plan to mobilize and organize at the events. susan, i guess some people look at this and labor have they been? >> yeah, right. may be on vacation. martha: [laughter] >> i think the real interesting thing here, can the president and the leadership turn this town hall movement into something positive for the country. you do have a lot of people energized. it does not have to be a contest to see you can't scream the loudest. we might be able to have a conversation in this country about how to deal with the health-care issue.

martha: we have some breaking news. trace: just a timeline on senator kennedy's funeral arrangements. he will lie in repose at the jfk library in boston on thursday and friday. he will be buried i am martha maccallum. -- he will be buried interred at arlington national cemetery. martha: are reports that the vice-president joe biden was big on friday night. there are reports that president obama will speak at the mass on saturday. kate, some folks look at this and say the democrats are doing exactly what they accused republicans and conservatives of

doing when they said this was all astroturf. now it sounds like they want to do the same thing. >> the funny thing is that it is not happening based on the opponents. the opposition is the grassroots. many of them are seniors who have never been involved in politics or town hall meetings before. they are showing genuine concern about the quality of health care and the cost of health care and end of life issues. susan was right when she said the question is can the democrats from the top generate the support. it is really coming from the pharmaceutical companies that have an $80 billion deal with the white house. coming from the gleeful trial lawyers. they're not even worried about tort reform. that is not even on the agenda. there's a difference between the fabricated support versus the

grassroots opposition of your average americans. martha: where are the grassroots voices of people who want a public option? >> let's talk about what this debate is about. i always try to tell the truth on both sides. the notion that the republicans are turning out without any organization -- that is silly. both sides have passionate people. both sides also have organizers to do this for a living. i do not think that is worth debating. martha: that does raise the question. are you saying that these people who we have watched, and are very passionate every day, that they do not feel the things they say? >> of course they feel that way.

>> there not being paid by the republican party. martha: where are the voices on the other side who say please give me nationalized health- care? >> nobody was nationalized health-care. >> that is exactly right. you are right. they do not want a national health care. it is just a special interest. you hit the nail right on the head. it is not on the left. those who are supporting the nationalized health care. it is the democrat national committee. >> this is just silly. this is why a lot of people stay home from these debates. why do you want to debate a non- issue? no one wants to nationalize health care. virtually everybody i know wants two things. they want poor people and unemployed people to have some access to health care so if they get sick, they do not die.

they want to make sure that their own families who have access to health care continue to have health care access. those are not republican and democrat ideas. they are not liberal and conservative ideas. they are fundamental american ideas that most of us agree on and would like to discuss. martha: you could probably discuss those in less than 1000 pages. it is all the rest of the stuff that has a lot of people concerned. susan, thank you. kate, thank you. >> thank you. trace: there's breaking news on the funeral arrangements for senator kennedy. ap is reporting that he will lie in repose tomorrow and friday at the john f. kennedy library in boston. major garrett just confirmed to the funeral will be on saturday at the mission hill neighborhood

of boston. the senator will be interred at arlington national cemetery. funeral arrangements appeared to be coming together in the death of senator kennedy. we will talk to two very close political veterans who worked with the senator.

trace: we have been reporting that senator edward kennedy has died at the age of 77. we are getting a better idea of his funeral or arrangements. tomorrow and friday he will lie in repose at the jfk library in boston. on saturday, the funeral will take place at our lady of perpetual hope basilica. here is new video just in of the scene at the kennedy compound in hyannis port.

tributes have been pouring in from around world. longtime friend and colleague in the senate, vice president joe biden. >> today we lost a truly remarkable man. to paraphrase this shakespearsho not think we will see his like again. i think the legacy he left is not just in the landmark legislation he passed, but in how he helped people look at themselves, and look at one another. trace: susan, you started working with him 30 years ago. you worked directly for him from 1979 to 1982. you kept in contact with him.

>> most people do. there's an unbelievable loyalty among former kennedy staffers. everybody knows he was a man of his lflaws, but as a senator he worked incredibly hard. he made an enormous market. i agree with the joe biden. trace: talk about loyalty. pat worked for kennedy and against kennedy. >> he never had a problem with that. i wrote him a letter and said i felt like i was caught between my friends on the kennedy's side and my friends on the carter side. he did not have a problem with its. the thing that joe biden is speaking about is the other part of it. when people suffered, ted kennedy was there.

when i started polling for the mcgovern campaign, my partner was murdered. ted kennedy reached out to me and really helped us. it was a personal thing. he did not have to do it. all the political its achievements,, i will remember ted kennedy the man. martha: his first and last time to achieve that personal goal, the presidency. what was it like when that was over? >> it was a terrible humiliation. starting with that horrible roger mudd interview. he was humiliated in iowa and new hampshire.

jimmy carter ended up losing the presidency. the democrats lost the senate. many people pointed fingers at him. his marriage fell apart. few perseverance. -- he persevered. he kept fighting for what he believed in, even when people were attacking him, even when he had been humiliated, even when some of us would not want to get up in the morning. >> that is very true. he was an extraordinary figure. we will not see the likes of someone like him on the national scene for a long, long time. trace: thank you very much. you can look back on the life and times of senator kennedy on foxnews.com. you will find all kinds of information, including an interactive timeline. it will give you 40 years of information. he was convicted of killing more

than two hundred americans, but was released from prison on compassionate grounds. now the man who welcomed home the lockerbie bomber is looking for a place to stay well visiting the united states next month, and he is finding plenty of outrage. we will talk to a mother who lost her daughter in that attack. she is making it clear he will not be welcome here. . ♪ well i was shopping for a new car, ♪ ♪ which one's me - a cool convertible or an suv? ♪ ♪ too bad i didn't know my credit was whack ♪ ♪ 'cause now i'm driving off the lot in a used sub-compact. ♪ ♪ f-r-e-e, that spells free credit report dot com, baby. ♪ ♪ saw their ads on my tv ♪ thought about going but was too lazy ♪ ♪ now instead of looking fly and rollin' phat ♪ ♪ my legs are sticking to the vinyl ♪ ♪ and my posse's getting laughed at. ♪ ♪ f-r-e-e, that spells free- credit report dot com, baby. ♪

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martha: he is not welcome here. that is the word from the governor of new jersey, there is word that wal-mart khaddafi might visit the garden state. -- there is word that momar

khaddafi might visit the garden state. new jersey was home to 23 of the people killed in the lockerbie bombing. khaddafi is expected to visit the united nations next month. there is concern that he and his entourage might set up camp at an angle would a state that is owned by the libyan government. that head -- that proposition is not sitting well with anyone, including the parents of one of the young victims of the bombing. joining me on the phone is her mother, susan. thank you. tell me about the loss of your daughter. she was studying in london, with a large group of students, correct? >> 20 years old, a talented actress and singer. she had a beautiful voice.

she was young and full of life and energy, with what might have been a very good future ahead of her. she has been gone a very long time. there were 35 syracuse students coming back together, a lot of other young people on that flight. it was a horrible tragedy, what happened. i can barely believe it. martha: i remember that night so well. it was right before christmas, everyone was waiting for people to come home before the holidays. i imagine that you had great excitement and anticipation, a way for the whole semester, coming home from the holidays. >> right, we had a fabulous homecoming all set up. then it crashed into the ground. >> what went through your mind when you saw the pictures of the only terrorist arrested and

sentenced to do time for this crime, when you saw him get off of that airplane to a hero's welcome? >> i was not surprised, but it was sickening and horrifying. i have long feared that this would happen. they had a couple of ways of getting him out. frankly, people try to sell us on the idea that gaddafi has transformed, but he has not, he is still one of the worst terrorist in the world. just to go there and be welcomed like that, a mass murderer. martha: it is so important that everyone remembers what happened on that night. my heart goes out to you. i hope that the protesting groups are successful in stopping him from being in new jersey.

trace: eight years for each of his victims, that is all. funeral plans for ted kennedy, we will bring you the information on what and when, next. do we owe progress? we're up to our necks in landfill, and down to the wire in resources and climate change is out to get us. that's why progress plays no role inside post shredded wheat. here we put the "no" in innovation. post original shredded wheat is still just the one, simple, honest ingredient which naturally comes with vitamins, minerals and fiber. all we did was make it spoon size. did we go too far? i just want fewer pills and relief that lasts all day. take 2 extra strength tylenol every 4 to 6 hours?!? taking 8 pills a day... and if i take it for 10 days -- that's 80 pills. just 2 aleve can last all day. perfect.

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